Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

Use Source A in the insert.
(a)[2]

Calculate the partnership profit for the year ending 31 March 2022.

(b)[10]

Draw up the partners’ capital accounts on page 3 so that the closing entries are shown. Use the workings space provided to set out your calculations.

(c)[4]

Calculate the sum paid by J Limited into the partnership bank account.

(d)[4]

Prepare the partnership bank account so that the closing entries are shown.

(e)[5]

Advise whether J Limited should keep pursuing the expansion strategy or not. Justify your answer.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: Interest on capital calculations: Alan $300000 \times 4% = $12000; Betty $240000 \times 4% = $9600

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